Shares in Scottish transport group Stagecoach (LON:SGC) fell 14 per cent on Wednesday, after disappointing second quarter results led to a downward revision of full-year profit expectations.
Revenues for the six months to October 31 were up 28 per cent on the same period last year to £1.97 billion. However, first-half pre-tax profits were down eight per cent on a reported basis to £90.8 million.
Stagecoach said in a statement that the group’s finances have been “adversely affected by the terrorist attacks in Paris discouraging people from travelling to major cities”. Revenue growth slowed dramatically in early November after the attacks – Stagecoach rely on inter-city European travel to boost their profits.
Chief Executive Martin Griffiths said that the figures were a “good set of results”, commenting:
“Overall, the group is in good financial shape and we were pleased to have put new bond financing arrangements in place earlier this year. Challenges remain in our sector in the short-term but the underlying strength of our businesses across the UK, continental Europe and North America, means we are well placed to drive value for our customers and investors.”
Stagecoach are currently trading down 12.86 percent at 310.30 pence per share. (1304GMT)
